Cash-in-hand blitz 'a tax grab too far'

Many people in the squeezed middle feel that benefit fraudsters can get away with ripping off the taxpayer

Jonathan Isaby, from the Taxpayers’ Alliance

Builders and plumbers are furious after Treasury Exchequer Secretary David Gauke said they were costing the UK economy about £2billion a year in unpaid tax.

Many were outraged by his suggestion they should be “good citizens” and refuse cash jobs if there is no receipt – despite the fact there is no law against paying anyone that way and banks want to phase out cheques.

Mr Gauke, 40, even claimed homeowners who give workers cash are as bad as people who deliberately dodge taxes.

But the angry traders said it was unfair to threaten ordinary people when millions are scrounging off benefits.

And they accused the Government of “double standards” as rich tax -dodgers continued to slip through the net.

Tariq Dag Khan, from tradesmen website Rated People, said: “The reality is that there is little or no alternative to cash payments for many tradesmen and criticising the whole industry belies a misunderstanding of the situation many customers and tradesmen are in.”

Labour MP John Mann, 52, a member of the Treasury Select Committee, said: “George Osborne and his team cannot resist attacking the working classes in Britain, while leaving millionaires free to hide money in UK secured overseas territories.”

And Jonathan Isaby, from the Taxpayers’ Alliance, said: “Many people in the squeezed middle feel that benefit fraudsters can get away with ripping off the taxpayer, while those fortunate enough to afford crafty accountants can dodge their taxes via legal loopholes.

“As long as this is the case they will find it hypocritical for ministers to lecture them about paying cash in hand.”